VICOR CORP (NASDAQ:VICR) Fits the Minervini Trend Template with High Growth Momentum

Investors looking to find stocks with high potential often use systematic methods that join solid technical trends with strong fundamental growth. One method is the Mark Minervini strategy, which uses a defined Trend Template to find stocks in strong uptrends and then adds fundamental screens to find companies with improving earnings and sales. This two-part method tries to find market leaders early in their major price increases. A recent scan made to find stocks fitting both the Minervini Trend Template and standards for strong growth momentum has pointed to VICOR CORP (NASDAQ:VICR) as a candidate for more review.

Technical Foundation: Adherence to the Minervini Trend Template

The Minervini Trend Template is a strict group of technical conditions made to confirm a stock is in a clear, lasting uptrend. It removes unstable or poor price action, concentrating only on securities showing clear institutional buying and momentum. For VICR, a check of the main standards shows a solid technical base:

• Price Above Key Moving Averages: The stock's current price is above its rising 50-day, 150-day, and 200-day simple moving averages (SMAs). This order is a common sign of both short-term and long-term positive momentum.
• Moving Average Order: The 50-day SMA ($74.80) trades above both the 150-day ($55.95) and 200-day ($54.94) SMAs, and the 150-day SMA is also above the 200-day. This positive order confirms a solid, structured uptrend across several timeframes.
• Nearness to Highs: VICR is trading within 25% of its 52-week high of $101.00, a main Minervini rule that focuses on strength instead of buying weaker performers. At the same time, the current price is over 30% above its 52-week low, showing a major recovery trend is already happening.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) score of 95.57, VICR is performing better than about 96% of all stocks. High relative strength is a key part of the Minervini approach, as it finds market leaders that often keep leading.

This combination of technical factors indicates VICR is in a defined Stage 2 advance, the main phase the strategy targets for large growth potential.

Fundamental Engine: Qualifying for High Growth Momentum

While a solid chart is necessary, the Minervini strategy gives equal weight to the fundamental reason pushing the price action. The "High Growth Momentum" part of the scan looks for companies showing strong improvement in their financial results. VICR's recent numbers show it matches this description:

• Earnings Improvement: The company has shown notable earnings per share (EPS) growth. Quarterly EPS growth year-over-year for the latest period is 142.3%. While earlier quarters showed changes, this recent jump is a good sign of momentum.
• Solid Sales Growth: Revenue growth stays healthy, with the last quarter showing an 18.5% increase year-over-year. Also, analysts have increased their revenue estimates for the next year by almost 7% over the past three months, showing growing belief in the company's sales path.
• Positive Estimate Changes: Possibly most important for momentum investors is the large upward change in earnings expectations. The average EPS estimate for the next fiscal year has been raised by over 54% in the last three months. Such large changes often come before institutional buying and more price gains.
• Strong Cash Flow Generation: The company's free cash flow per share has increased by a notable 686% over the past year, giving financial room and confirming the quality of its earnings.

This mix of improving quarterly results, solid analyst opinion, and strong cash flow generation provides the fundamental "fuel" that can support a technical breakout, a central idea in Minervini's Specific Entry Point Analysis (SEPA).

Technical Health Overview

Beyond the specific Trend Template filters, a wider view of VICR's technical health is positive. According to ChartMill's own analysis, the stock gets a high Technical Rating of 9 out of 10, showing very good long-term and short-term trends. The report states the stock is performing better than most of its peers in the Electrical Equipment industry. While the setup rating is more average, showing the stock may be stretched in the very short term after its large rise, the overall technical view stays firm. Key support levels are found in the $83-$84 range, which could be a guide for risk management. For a detailed look at support, resistance, and trend analysis, you can see the full technical report for VICR.

Conclusion

VICOR CORP shows an example of matching a disciplined growth and momentum strategy. It meets the strict technical list of the Minervini Trend Template, confirming it is in a solid market uptrend. Also, its fundamental profile shows the signs of high growth momentum, marked by large recent earnings growth, positive sales trends, and, importantly, big upward changes from analysts. This link between technical strength and fundamental improvement is exactly what strategies like Minervini's aim to find.

For investors wanting to find similar candidates that meet this mix of technical and fundamental standards, the scanning process that found VICR can be repeated. You can try the 'High Growth Momentum + Trend Template' scan here to see current results.

Disclaimer: This article is for informational and educational purposes only. It is not intended as investment advice, a recommendation, or an offer to buy or sell any security. The analysis is based on data provided and does not guarantee future performance. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Please read our full disclaimer and terms of use for more information.